NT2 - Disappointing Q3 results; 9M 2023 NPAT-MI trails our forecast - Earnings Flash
  • 2023-10-17T00:00:00
  • Company Research

* NT2 released Q3 2023 results with revenue of VND816bn (-62% YoY) and reported net loss of VND124bn vs reported net profit of VND199bn in Q3 2022. The YoY decline in NT2's top line and bottom line can be primarily attributed to lower sales volume of 365 million kWh (-59% YoY) caused by abnormally high rainfall in August 2023, low competitive generation market (CGM) prices in July-August 2023, and NT2 undergoing major maintenance for most of September 2023. Additionally, we believe NT2 did not record a compensation for FX loss in Q3 2023 vs ~VND300bn in Q3 2022.  We note that SG&A expenses dropped 92% YoY as NT2 booked VND187bn of bad debt provision in Q3 2022 vs none in Q3 2023.


* NT2’s 9M 2023 revenue and reported NPAT-MI were VND5.2tn (-21% YoY) and VND256bn (-65% YoY), respectively. We believe the weak 9M 2023 earnings is due to (1) a 19% YoY drop in sales volume (which resulted from a gas shortage in Q2, unexpectedly high rainfall in August, and major maintenance in September), (2) a surge in operation and maintenance costs of running on diesel oil in Q2 and, (3) NT2 not recording a compensation for FX loss in 9M 2023 vs ~VND300bn in 9M 2022. 


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